Question

The local home improvement store has a washing machine on sale for $883, with the payment due in 2 year(s) from today. The stThanks so much everyone!

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Present value=$883*Present value of discounting factor(rate%,time period)

=$883/1.04^2

=$883*0.924556213

=$816.38(Approx).

Add a comment
Know the answer?
Add Answer to:
Thanks so much everyone! The local home improvement store has a washing machine on sale for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The local home improvement store has a washing machine on sale for $1,415, with the payment...

    The local home improvement store has a washing machine on sale for $1,415, with the payment due in 1year from today. the store is willing to discount the price at an annual rate of 10 percent (compounded annually) if you pay today. What is the amount if you pay for the washing machine today?

  • The local home improvement store has a washing machine selling for $1798, with payment due in...

    The local home improvement store has a washing machine selling for $1798, with payment due in 1 years from today. The store is willing to discount the price at an annual rate of 8 percent (compounded annually) if you pay today. What is the amount if you pay for the washing machine today? Round the answer to two decimal places

  • Thanks so much everyone! I am at a loss... If you want to have $427,644 in...

    Thanks so much everyone! I am at a loss... If you want to have $427,644 in 7 years, how much money should you put in a savings account today? Assume that the savings account pays you 6.4 percent and it is compounded annually. Round the answer to two decimal places

  • A furniture store has a sofa on sale for $800 with the payment due one year...

    A furniture store has a sofa on sale for $800 with the payment due one year from today. The store is willing to discount the price at an annual rate of 2.8% if you pay today. What is the amount if you pay today? $584 $707 $531 $778 5643

  • You are interested in purchasing the Malibu home below (sale price of $22,000,000, mortgage rate of...

    You are interested in purchasing the Malibu home below (sale price of $22,000,000, mortgage rate of 3.955%, 20% down payment, 30 year fixed mortgage). Using all of the information below, how much principal would you pay                             [ Answers ] ["$26,158", "$25,816", "$25,646", "$26,714"]       during month 2? How much would your monthly payment go up today                            [ Answers ]             ...

  • Hi all, Thanks so much for helping me out; Please show me all of the work,...

    Hi all, Thanks so much for helping me out; Please show me all of the work, as I really need to get this down! Thanks! You are considering the purchase of Crown Bakery, Inc. common stock that just paid a dividend of $19.59 per share. You expect the dividend to grow at a rate of 1.04 percent per year, indefinitely. You estimate that a required rate of return of 12.18 percent, will be adequate compensation for this investment. What is...

  • A local furniture store is advertising a deal in which you buy a $2.600 dining room...

    A local furniture store is advertising a deal in which you buy a $2.600 dining room set and do not need to pay for two years (no Interest cost is incurred). How much money would you have to deposit now in a savings account earning 6 percent APR compounded monthly, to pay the $2.600 bill in two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value How much would you have to...

  • Please label and bold the answers. Thanks so much I will make sure to leave you...

    Please label and bold the answers. Thanks so much I will make sure to leave you a thumbs up and this is my last question I can post this month. This is due at 3 so please help me. I would really appreciate it thanks so much!!!!!!!! Problem 6.01 Sheridan, Inc., management expects the company to earn cash flows of $12,300, $16,400, $17,900, and $19,200 over the next four years. If the company uses an 7 percent discount rate, what...

  • A local furniture store is advertising a deal in which you buy a $2,900 dining room...

    A local furniture store is advertising a deal in which you buy a $2,900 dining room set and do not need to pay for two years (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 6 percent APR, compounded monthly, to pay the $2,900 bill in two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Find Present value How much would you have...

  • Problem 4 and 5-5 Present Value and Annuity Payments A local furniture store is advertising a...

    Problem 4 and 5-5 Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $3,100 dining room set and do not need to pay for two years (no interest cost is incurred) How much money would you have to deposit now in a savings account earning 4 percent APR, compounded monthly, to pay the $3,100 bill in two years? (Do not round intermediate calculations and round your final answer to 2 declmal...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT